A Brand Extension is a way for a company to increase its revenue. It is a way to make money by using the brand name of an established product in a way that has nothing to do with the original purpose. For example, Apple used its brand name to sell computers, music and phones. Here are the reasons why a brand extension is good for your business.1- New product lines:- Brand extensions allow companies to launch new product lines that have nothing to do with the original product. This can be done in several different ways. For example, if you are selling a certain type of shoe, you can create new types of shoes under the same brand name. However, this should not be done carelessly. The shoes should be of high quality and they should go along with the image of the company.2- It creates good will:- When people see that a company is willing to try new ideas, it builds trust between the company and its customers. This is especially true if the product or service does not directly compete with the main product of the company.3- It allows companies to diversify their product line:- Companies that have a diversified product line are much less likely to face problems from the loss of a product. For example, if a company specializes in electronics, it is much more likely to be hurt by the loss of one of its products than a company that sells electronics and other things. Therefore, a brand extension can help protect against this loss.4- It makes money:- Brand extensions are not always successful, but they are usually profitable. This is because there is still value in the brand name and people are willing to pay money to use it. For example, after Apple began selling computers, they created an operating system for those computers. They did not have to create a brand new name (they already had one) and they did not have to spend a lot of money on research and development. They simply started selling what they already had.5- It prevents the company from being trapped by its own success:- A company cannot stay on top forever. It is likely that at some point it will lose some market share and make less profit than it used to. Brand extensions allow companies to continue making money when their main product is no longer as strong. This allows companies to stay on top for much longer than they otherwise would.6-It allows companies to be more flexible:- Brand extensions allow companies to change their products without changing their name. This allows companies to keep their image while they are searching for a new product.For example, when Apple first started making computers, they were all about simplicity. They wanted to make a product that was easy to use. However, now they make all kinds of computer. They have laptops and desktops and tablets. However, none of these products has changed the brand image of Apple. People still think of Apple as a powerful brand that makes simple products. This is because Apple introduced brand extensions as soon as they made a new product. They did not wait until their new product was successful before introducing it.
